While researching the prosperous iGaming market, you may have cause to ask, what is an iGaming operator? Or perhaps you are already an operator wondering how far the boundaries stretch.
This essential guide answers these questions and explores the key factors that make some operators more successful than others in this highly competitive industry.
Definition of an iGaming Operator
In layman’s terms, an iGaming operator is a company that runs a gambling platform providing online games and betting opportunities to the end user.
They run websites and mobile apps that take wagers and payout winnings on sports betting bets, online casino games, lottery tickets, bingo games, poker events and anything else related to gambling online.
Think of them as the digital equivalent of a high-street bookmaker, bingo hall or brick-and-mortar casino. Examples of popular platforms you may be familiar with managed by iGaming operators include Bet365, 888 Casino, Lottoland, and Mecca Bingo.
iGaming operators are the front face of the online gambling industry. While they present games and betting opportunities to the public, they don't necessarily build the core products and services their platform runs on, like casino games, betting odds, payment gateways, etc. Other service and technology providers within the iGaming industry do that.
Let’s take a broader look at the iGaming sector and discover how iGaming operators fit into the bigger picture.
Overview of the iGaming Industry
Several notable types of product and service providers exist within the iGaming industry that provide core solutions for iGaming operators. The primary contributors include:
Game developers
Game developers innovate the entertaining games available in online casinos and other gambling platforms. They write the code for slot games, roulette, and instant wins, such as scratch cards. Top software developers in the industry include NetEnt, Playtech and Microgaming.
Payment Providers
Payment providers supply the payment gateways that facilitate fast and secure transactions between iGaming platforms and end users. Online casinos and sportsbooks offer diverse payment methods, such as bank transfers, card payments, cash, and cryptocurrencies. Popular iGaming gateway providers include PayPal, Skill, EcoPayz and PaySafeCard, among many others.
Data & Analytics Providers
Data and analytics providers collect, analyse, and interpret vast amounts of information to help operators improve operations and increase efficiency. Typically, this data is used to understand player behaviours, preferences and trends, tailor games and marketing efforts, and mitigate the risk of fraudulent activity.
Gambling Licence Bodies & Authorities
Licensing bodies and authorities within the iGaming industry enforce the laws and regulations for gambling within a geographical jurisdiction. They are a critical component of the industry since they issue the gambling licences needed for iGaming operators to provide gambling products and services to the general public legally.
iGaming Software Providers
Software providers are a central figure in the iGaming supply chain. Fundamentally, they integrate the products and services used by iGaming operators and develop software that drives an online gambling platform without the need to deal with multiple suppliers and licensing authorities. Prominent iGaming software provider Alternar, for instance, provides a fast and affordable way to establish a brand in weeks while still allowing businesses to bring operations in-house as the company grows.
iGaming Operators
iGaming operators present gambling games and services to the public, providing the means for bettors to wager on sports and games. Aside from managing all the operations associated with running an online gambling platform, operators engage in marketing and promotional activities to attract and retain players.
Affiliate Marketers
Affiliate marketers promote the services offered by iGaming platforms. Their role within the industry is to inform, influence, and engage with the general public and drive traffic to an online gambling platform. iGaming operators offer various compensation models for affiliate partners but typically offer a percentage or flat rate for every new customer who opens an account and deposits money.
The Role and Duties of an Operator
iGaming operators undertake several duties to ensure a superior online gambling experience for players and bettors.
First and foremost, operators need a detailed understanding of technical innovation and advancements within the industry. This is not only necessary for developing a brand; it's an ongoing commitment. Critical to this objective is the management of game portfolios and betting opportunities. Updating products regularly with a variety of high-quality products relevant to the gambling platform maintains player interest and competitiveness.
In relation to this, employing data analytics helps platform owners gain valuable intelligence on player activity to guide strategic decision-making on a daily basis in everything from game selection to marketing strategies and beyond.
The development and execution of optimal marketing strategies to attract new players and retain existing ones is central to the duties of iGaming operators in 2024. Typically, this includes a comprehensive range of bonuses and promotions, such as welcome bonuses, free bet offers, etc. With their innovative games, events, tournaments and leaderboards, loyalty programs are often included as a promotional effort to keep existing players engaged and returning for more.
Internal marketing and promotional activities go hand in hand with building solid relationships with affiliate marketers and advertising networks. Building trust with accurate commission payouts and effective communication is necessary for operators who want to engage with their target market, reach new customers, and drive revenue.
Similarly, providing essential services that customers will need, like effective payment gateways and customer support channels, is equally vital. Offering a range of deposit and withdrawal payment options and addressing customer issues promptly increases customer satisfaction and loyalty.
Key Responsibilities For Stability and Success
Beyond the scope of their daily duties, iGaming operators have a number of regulatory obligations and responsibilities that are integral to maintaining a gambling licence. Ultimately, they must demonstrate compliance with the laws of the jurisdiction where the licence is valid, usually covering wide-ranging requirements implemented to protect players and the overall integrity of the online gambling industry.
While specific requirements vary from one gambling licence to another, some common elements unite them all. One is the use and testing of random number generators (RNGs). RNGs guarantee the unpredictability of an outcome and prove game fairness, thereby maintaining player trust and an operator’s credibility.
Furthermore, know-your-customer (KYC) verification processes are another fundamental aspect of sustaining a gaming licence. Such measures are put in place to ensure players are of legal gambling age and mitigate the risk of fraud and money laundering (AML).
Compliance with established responsible gambling policies and practices is another key commitment for iGaming operators. Taking a proactive approach not only helps operators meet their obligations in this area but also builds trust with players and stakeholders. In 2024, operators must make various responsible gambling tools and resources accessible, including self-exclusion, the setting of deposit and loss limits, reality checks, and cooling-off periods.
In addition to legal compliances, operators must also maintain and demonstrate sound financial integrity. This commonly requires iGaming operators to ring-fence player accounts from company accounts, ensuring players are not liable for any debt accrued by iGaming operators. Financial policies like this protect personal funds, even if all players withdraw their balance simultaneously.
Factors Contributing to the Sustained Success of an iGaming Operator
The online gambling industry is highly competitive. To succeed in offering virtual casino games, online sports betting opportunities and other gambling activities, operators must navigate and master multiple disciplines. By integrating innovative and forward-thinking approaches in customer acquisition and the use of advanced technology, iGaming operators can set themselves apart from the competition and establish a sustainable business model.
The critical factors that distinguish between mediocrity and success in the iGaming industry include:
Customer Acquisition & Retention
Disciplined Regulatory Compliance
Adherence to legal frameworks in targeted jurisdictions.
Brand Reputation
Building and maintaining a trustworthy brand.
Marketing Strategies
Innovative and targeted advertising campaigns.
Partnership Networks
Affiliate and technology alliances enhancing offerings and reach.
Market Knowledge and Understanding
Advanced insights into local and global market trends.
Responsible Gaming Practices
Embracing policies and tools to promote safe gambling.
Attractive and Dynamic Game Portfolio
Ability to provide high-quality game diversity to suit all preferences.
User Experience
Intuitive interface and easy-to-navigate website experience.
Player Retention Strategies
Loyalty programs and bonus offers tailored to existing customers.
Payment Gateway Provision
The provision of diverse and secure payment options.
Customer Support Features and Excellence
Adequate provision of 24/7 fast and professional support services.
Cultural Adaptation
Tailoring content and marketing to fit cultural preferences.
Employee Training
Comprehensive training to ensure high service standards.
Technology Innovation & Deployment
Advanced Security Measures
Ensuring secure transactions and data protection.
Robust Platform Technology
The use of reliable and scalable software solutions.
Mobile Compatibility
Creating optimised experiences and performance across all devices.
Analytical Capabilities
Leveraging data to drive strategic decisions and improvements.
Technological Innovation
Adoption of new tech to enhance user engagement and efficiency.
Strong Network Security
Advanced protection measures against cyber threats and breaches.
Future Outlook for iGaming
As we stand midway through the 2020s, the iGaming industry is experiencing formidable challenges and unprecedented opportunities.
On the one hand, we are seeing a strong movement towards the legalisation of online gambling in countries that have traditionally blocked its path, often citing moral concerns. As governments relax laws to accommodate the growing global demand for iGaming entertainment, complexity within regulatory frameworks is increasing.
Meanwhile, rapid technological advancements in artificial intelligence, analytics, blockchain and game technology - to name a few current trends - are pushing the boundaries in innovation and competition.
Despite these challenges, the future outlook for the iGaming industry looks overwhelmingly positive. Global expansion in internet access and legal online betting opportunities is predicted to trigger a surge in worldwide consumer demand. As we move forward, aspiring iGaming operators have an excellent chance to carve out a niche in this booming industry. Implementing a solid marketing strategy, leveraging cutting-edge technology and employing the best practices in the industry to inspire player and stakeholder trust are the foundational pillars for future growth and success.
Opportunities for new iGaming operators in 2024
Despite high levels of competition in the iGaming industry, there is no evidence that the market is slowing down and reaching saturation. Moreover, the latest trends point towards market expansion.
While the legal framework and the expense of running a competitive platform may be barriers to entry for some, smaller companies can overcome these hurdles by aligning with iGaming software providers that have the knowledge and solutions in place to help platform owners make an immediate impact and scale organically over time.
Altenar’s white-label solution has been developed to help new operators get off to the best possible start and avoid the common pitfalls of launching an online gambling brand. Speak to our iGaming experts today to discuss your specific requirements.
